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43.1 and 43.2 (clean energy equipment) 100% first year claim


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Hello, I have a rental property and installed an air-source heat pump which, in my understanding, is eligible for full value deduction in the first year of ownership. However, I can not find a suitable choice in the Ufile "Capital cost allowance for the rental property" section. If I chose "Class 43.2 - 50%", the "Description and amount of capital additions of AIIP"  notes that " notes that "..... The Accelerated Investment Incentive will also not apply to ......  43.1 and 43.2 (clean energy equipment), which will rather be eligible for the full expensing measure introduced in this Statement." which hints that there should be a way to deduct the full expense. Please advise.

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Hello vtchernev,

Please see example below for CCA Class 43.1 IF using AAIP (2 100%)

Class 43.1 (30%) and Class 43.2 (50%) – Clean energy equipment

To support investment in clean technologies, the CCA Classes 43.1 and 43.2 are expanded by:

    including new types of property (for example, pumped hydroelectric storage equipment)
    broadening the eligibility for certain existing property types (for example, ground source heat pump systems)
 

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>>T776

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Hello Geo123. After following your example, the "Total CCA claim for the year" number (under Area A – Calculation of capital cost allowance (CCA) claim section) seems right, but it is not entered on line 9936 of Part 4; hence, the CCA claim is not deducted from my income. Do you have any idea why that is?

Best

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